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Managers, Boards, and the Principal-Agent Problem in Cooperatives: A Survey of Cooperative Managers in Texas

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  • Seo, Frank
  • Hudson, Darren
  • McCallister, Donna
  • Johnson, Phil
  • Park, John
Abstract
The aim of the study is to investigate the possible Principal-Agent (PA) problem between managers and the boards in cooperatives, which no study has examined before. We surveyed 28 cooperative managers in Texas, divided into three sub-category groups, to compare mean differences within a conceptual model. As a result, the investigation yielded no direct evidence of a manager-board PA problem within the survey respondents, which suggests unique characteristics of the PA relationships between managers and the boards in cooperatives compared to investor-oriented firms. Lastly, the comparison revealed behavioral differences between each manager group, which provide implications for cooperative management.

Suggested Citation

  • Seo, Frank & Hudson, Darren & McCallister, Donna & Johnson, Phil & Park, John, 2024. "Managers, Boards, and the Principal-Agent Problem in Cooperatives: A Survey of Cooperative Managers in Texas," Journal of Cooperatives, NCERA-210, vol. 37, December.
    • Handle: RePEc:ags:jlcoop:348501
    DOI: 10.22004/ag.econ.348501
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    Agribusiness;

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